Tagged: retail

Retailers face a mobile strategy dilemma

Now, more than ever before, consumers are using their smartphones not only as a communication tool, but also as their number one shopping and retail browsing precinct.

This shift in consumer behaviour when it comes to mobile browsing has created what I term the Mobile Strategy Dilemma: should retailers develop a mobile application, or invest heavily in a highly responsive website?

Having both a native app strategy and an e-commerce website is a waste of money and grossly unrealistic for retailers, so a choice absolutely needs to be made. But what is the best choice? And which will work best for any given retailer?

Let’s look at the numbers. According to recent data from ComScore, smartphone apps now constitute 50 per cent of all digital media time, up a huge 44 per cent from a year ago. Mobile is now a whopping 68 per cent overall with desktop claiming just 32 per cent of digital attention.girl-iphone-stock-810x360

As a society, and with advancements in technology and payment methods, we are transitioning from a ‘point and click’ world to a ‘swipe and tap’ way of life, steering away from the world of desktops to multi-channel usage. Retailers that aren’t reacting to these changes in mobile usage won’t see any online sales conversion, which is where the money lies.

This is where the Mobile Strategy Dilemma comes in. Retailers are asking: “If I invest in a native app strategy not enough people will download and use it, but if I don’t have a native mobile app I am doomed”.

You’re damned if you do, and doomed if you don’t.

Benefits of apps vs. mobile websites

Apps offer benefits that other channels simply can’t, activating location services to coincide with in-store beacons and enhance the shopping experience with the ability to communicate special offers, discounts and personalise customer service and human interaction. The unprecedented accessibility and convenience of shopping from an app doesn’t even compete with that of a desktop, with many laptop users converting to the use of iPad Pro or smartphone to conduct their online shopping activity.

While most retailers have mobile-optimised sites, shoppers are clearly converting across multiple channels. The gap between share of traffic and share of sales represents a huge opportunity for retailers who don’t see over 40 per cent of their mobile traffic converting digitally. Mobile-optimised site browsing isn’t as seamless for the online shopper, which begs for retailers to offer a richer and more convenient customer experience which can be provided in app-form.

With Facebook usage on mobile at approximately 80 per cent and Instagram at almost 100 per cent, it makes sense this is where shoppers are browsing and sharing. So why is it the lions-share of marketing spend on fixed web technology? The skills needed from retailers in order to deliver on mobile are immensely different than web, requiring development, integrations and design (UX/UI).

Today’s marketing funnel is broken into short, intent-driven moments, and marketing’s role throughout the funnel routinely extends all the way through to purchase. As customers enter mid-funnel, skip stages altogether, or move through this new funnel out of order, the business costs to retailers continue to mount and the cost of acquiring and retaining new customers grows more expensive. In addition, managing the host of technologies that retailers have adopted to meet these challenges has significantly slowed down their ability to respond with speed to changing customer expectations and software advances.

Most retailers turn to mobile vendors due to lack of sufficient in-house mobile resources and expertise to meet their strategic goals. Forrester recently reported that 56 per cent of retailers work with several partners, including agencies, specialty vendors, and platform providers, to support integrated mobile initiatives. The issue lies in integrating and managing multiple point solutions as there are high costs associated, and they hamper the retailer’s agility in responding to changing customer expectations.

So what is the solution to this modern retail dilemma?

Retailers need to partner with specialist tech organisations in order to combat the trend. It’s about working with those that not only have the know-how, but also the connections to produce a universal shopping experience via a native app where all retailers are reachable together.

Mobile first or even mobile-only solutions will start to surface to satisfy this need, where the shopper is chaperoned all the way from discovery to purchase in-store or online. The new measure will be a pay per action model where retailers will pay for an actual sale conversion.

While the future of mobile is bright, it’s vital for retailers to move their strategy to more than optimisation allowing a seamless experience for consumers and further driving sales and traffic via their hefty investment in app technology. This will ensure greater sales, but also higher in-store conversion. A channel consumers will never be able to completely step away from.

Concept to Cannes in 9 Months – The RainCheck Startup Journey

It seems like yesterday when I met with my lead developer to discuss the viability of an idea for what is now a thriving startup called RainCheck. aaeaaqaaaaaaaaouaaaajgmxyti5ngziltm0zjytngm4ny05nzq5ltjhyje5mwywywfjma

Now here we are only 9 months on and off to Cannes as the only Australian startup for the Lions International Festival of Creativity, invited by Unilever as part of their Foundry50 program – a global search for the top 50 marketing technology startups.

Ever since I can remember, software and platform design has always been about IFTTT (If This Then That), and designing RainCheck was no different.

Certain other things had to happen before other things could happen. For example, BLE v.4.0 (Bluetooth) needed to “wake” an App on a Smartphone before anyone could realise a benefit.

I gathered a world-class team with over 65 years’ combined experience to originally solve the problem of online shopping cart abandonment, which is around 75% in retailand worth over $4Trillion globally.

During our research we uncovered some interesting insights;

  • Firstly, eCommerce isn’t exactly taking off in retail, like we have been led to believe
  • Secondly, everyone now has their computer in the palm of their hand while shopping

In 2010, the eCommerce contribution to retail figures in Australia sat at 4.4%. At the time, Gerry Harvey, founder of Harvey Norman (one of Australia’s largest retailers), stated “why would I be worried about eCommerce at that rate”. Everyone including myself thought the guy was mad, buying online will take off and be huge!

Fast forward to 2015 and that figure is 6.7%, so in 5 years it has only grown 2.3%, hardly booming is it?

With new marketing jargon arriving such as “omni-channel” and “connected store”, and brands and agencies trying to understand shopper behaviour, we saw an opportunity.

If so many people are in fact shopping online, yet 93% are still buying in-store, the market needed an online to offline solution, and RainCheck was born.

Our vision is to be the world’s leading Online-to-Offline (O2O) shopping enabler.

We are dedicated to bridging the gap between online and offline for retailers – feat no company has achieved globally, yet.

By combining the most innovative technologies onto one platform we offer a seamless journey from online to offline for both retailers and shoppers.

  • For retailers, RainCheck is the world’s first mobile-only O2O Commerce platform that helps close the data loop from online to in-store via the Cloud, Beacons and Proximity technology
  • For shoppers, RainCheck is a virtual shopping wishlist that notifies them of items they like online when they enter physical stores

We’re on a mission to capture the $50Billion of abandoned items online each year in Australia, and convert them in-store where the value of multi-channel shoppers is much higher.

We are launching in our local Australian market first as it’s ripe with very high Smartphone use on top of a savvy shopping community.

We see Asia as our progression path next year once we prove the platform, as they are a “mobile-only’ region where O2O Commerce is already huge.

We’re excited by the prospects ahead and hope you’ll join us on this journey. I will be sharing more on LinkedIn as we go so please check-in regularly for updates.

Feel free to email me directly at cameron@getraincheck.com and visit our website for more information – http://www.getraincheck.com/